Financial literacy: World's top 20 nations, India lags

Financial literacy: World's top 20 nations, India lags

Indians are among the least financially literate people across the globe with youngsters and women struggling most with their finance knowledge due to lack of discussions within the families on money management issues, says a report by credit card firm Visa.

As per the 'Global Financial literacy barometer', India is ranked 23rd among the 28 countries surveyed, with 35 per cent of its population termed financially literate.

More than 70 percent of survey respondents cannot endure a personal economic emergency spanning more than three months.

Moreover, the survey found that the average savings set aside by Indians for an emergency is 1.9 months – close to the survey average of 2 months.

Chinese respondents were the best at saving, with an average of 3.9 months of expenses saved. Pakistani respondents had the least saved, with 0.8 months of expenses set aside.

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Image: A shopkeeper staples Indian currency notes to make garlands at a market in Jammu.Photographs: Mukesh Gupta/Reuters.

Financial literacy: World's top 20 nations, India lags

Brazil tops the financial literacy chart. Brazilians believe that schools should start financial education at the age of nine. Brazil topped the list of places that parents talk with their kids about money, says the Visa's International Financial Literacy Barometer.

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Image: Brazilian real coins are seen in this picture illustration taken in Rio de Janeiro.Photographs: Bruno Domingos/Reuters.

Financial literacy: World's top 20 nations, India lags

In the US, the average person had 2.9 months of expenses saved. More than half of the citizens in the United States cannot financially survive a personal economic emergency lasting more than three months, says the Visa's International Financial Literacy study.

The United States has the worst opinion of its teenagers' money management skills, with 70.5 per cent of respondents saying that U.S. teens don't understand money management basics.

54% of respondents said that they follow a budget closely or most of the time. 44.4% said that they didn't have a budget.

High-income and low-income respondents had similar rates in terms of failure to budget, with 24.8% of those earning under $20k per year and 24.7% of those earning over $75k per year saying they did not maintain a budget.

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Image: A departmental store worker checks through dollar bills after releasing Apple's new iPad to a customer in Manhattan, New York.Photographs: Eduardo Munoz/Reuters.

Financial literacy: World's top 20 nations, India lags

Among individuals across the globe who report that they do not have enough resources to cover a personal emergency lasting less than three months, a significant percentage fall into high-income categories.

In Canada, for example, 39 percent of individuals with less than three months' worth of living expenses saved fall into the high-income category, while 34 percent fall into the low-income category.

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Image: A man holds the new Canadian 100 dollar bills made of polymer in Toronto.Photographs: Mark Blinch/Reuters.

Financial literacy: World's top 20 nations, India lags

In Brazil, for example, more than half of the people surveyed believe government and school-supported financial education should begin before children reach the age of nine. Other high-ranking countries in this regard include Morocco and Thailand.

Financial literacy: World's top 20 nations, India lags

When it comes to ensuring that their children will be financially savvy, parents from the most economically stressed situations are among those spending the most time talking with their children about money management, budgeting, saving, responsible spending and debt.

When it comes to speaking with children about finances, some of the highest-ranking countries include Lebanon.

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Image: A Lebanese banker counts U.S. dollars at BLOM Bank's head office in Beirut.Photographs: Jamal Saidi/Reuters.

Financial literacy: World's top 20 nations, India lags

Asian respondents have the best chance of surviving a personal financial struggle.

In Hong Kong and Taiwan, nearly 60 percent of survey respondents could survive a personal economic downturn lasting more than three months, and a third or more could survive a personal economic emergency that spanned more than six months.

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Image: Taiwan's new banknotes the T$500, T$1,000 and T$2,000 notes, pictured, will feature images with modern themes such as technology, education and sport.Photographs: Reuters.

Financial literacy: World's top 20 nations, India lags

In Hong Kong, nearly 60 percent of survey respondents could survive a personal economic downturn lasting more than three months, and a third or more could survive a personal economic emergency that spanned more than six months.

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Image: The latest edition of Hong Kong dollar notes launched by HSBC are seen during an exhibition organized by the Hong Kong Monetary Authority in Hong Kong.Photographs: Bobby Yip/Reuters.

Financial literacy: World's top 20 nations, India lags

In Russia, there are more individuals in the high-income category who have less than three months of expenses saved than there are in the low-income category.

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Image: A detail of a decorative heirloom necklace made from coins worn by a member of the singing group "Buranovskiye Babushki" during a rehearsal in the village club in Buranovo in the central Russian region of Udmurtia.Photographs: Sergei Karpukhin/Reuters.

Financial literacy: World's top 20 nations, India lags

In Serbia, individuals in the low-income category outpace savers in all other income categories.

The situation is worse in countries such as Indonesia, Lebanon, Pakistan and Serbia, where only 13 to 14 percent of the population could endure a personal economic emergency lasting more than three months.

Image: A student from the technical science faculty at the University of Belgrade wears an oversized 100-dinar banknote with a portrait of Nikola Tesla during a masked ball in Belgrade.Photographs: Marko Djurica/Reuters.